What death benefit and age are you using for those numbers? I may have missed it. What is the premium in year one for the no-lapse UL and what is the premium in year one for the non-par WL paid up at 65? What if they live past age 90?
Just Try to Understand Universal Life...
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What death benefit and age are you using for those numbers? I may have missed it. What is the premium in year one for the no-lapse UL and what is the premium in year one for the non-par WL paid up at 65? What if they live past age 90?
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Another factor to consider is "value".
If the Face amount is the same. The difference is the premium. What added value could that buy? Adding waiver to the NL UL on a 40 year old breadwinner seems like a good idea. And/or covering Mom to offset lost income or child care duties. Or maybe a side fund. Or short pay the policy.
If a 40 year old has kids at home they are most likely only going to be dependents for another 10 to 20 years. Seems like they would need the max amount of coverage during that time.
A lot of ways to do what we do. Does not look like anyone here is talking about doing anything wrong, just different.
If the Face amount is the same. The difference is the premium. What added value could that buy? Adding waiver to the NL UL on a 40 year old breadwinner seems like a good idea. And/or covering Mom to offset lost income or child care duties. Or maybe a side fund. Or short pay the policy.
If a 40 year old has kids at home they are most likely only going to be dependents for another 10 to 20 years. Seems like they would need the max amount of coverage during that time.
A lot of ways to do what we do. Does not look like anyone here is talking about doing anything wrong, just different.
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I'm not sure of the initial DB numbers, but of course the out-of-pocket outlay in year one is higher with the WL contract than the GUL. If we were comparing 1st year premium, we'd only sell term. At the end of the day, the beneficiary who gets a death benefit isn't going to ask "What kind of policy was this from? What was the cumulative premium?".
Ultimately, it is up to us to show what a client's options are, and let them decide. I get paid no matter what. What I will say is that my clients see what I own (WL/term combo totalling my economic life value in coverage), and buy a WL/term combo, and buy a lot more coverage than they would have through another agent. Dave, I'm guessing you own a lot of UL on yourself. Thus, your clients will buy more UL from you. Nothing wrong with this, just pointing out an obvious truth: Our clients reflect our beliefs and vice-versa. I believe I am better off with the non-forfeiture options WL provides and am willing to have a higher out of pocket outlay for the privledge. It simply comes down to what is important to people. If there is enough perceived value, people will buy.
Fair enough, I can agree with that.
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I'm using 40 male Standard NT for 250K DB.
NLGUL Initial Premium = $2,214
Non Par WL 65 = $3,187
NLGUL total outlay @118 = $172,716
Non Par WL 65 = $79,675
Same at Super Prf'd rate
NLGUL Initial Premium = $1,443
NP WL 65 = $2,758
NLGUL total outlay @117 = $111,123
NP WL 65 = $68,938
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A $1,000.00 difference in FYP?
My clients tend not to be the "money is no object" people. You guys fish in deeper ponds than I do. They could cover a lot of other needs with a grand. IMHO
My clients tend not to be the "money is no object" people. You guys fish in deeper ponds than I do. They could cover a lot of other needs with a grand. IMHO
40 year old male, standard, $250k death benefit, no-lapse UL paid up at age 65 is $1904 per year with Aviva. The same person could get a $400k death benefit paid up at age 65 on the no-lapse UL for $3,046 per year, still less than the $250k non-par WL.
40 year old male, preferred plus, $250k death benefit, no-lapse UL paid up at age 65 is $1,560 per year with Aviva. The same person could get a $450k death benefit for $2808 per year, only a $50 difference from the non-par WL with a $250k death benefit.
I'd say that's overpriced.
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I'm looking at Aviva GUL for 40 male standard NT for 250K paid up at 65 and it's showing premium of $3,347. Are we looking at the same policy?
Where'd you get that from? From Compulife:
Aviva - Advantage Builder with NLG pay to 65 - $1904.00 per year
Aviva - Guarantee UL Solution with NLG pay to 65 - $2012.50 per year
West Coast Life - Lifetime Platinum III pay to 65 - $2339.77 per year
United of Omaha - GUL Complete pay to 65 - $2462.60 per year
You could even do a 10-pay with the Aviva product for $3593 per year, giving a total lifetime outlay of $35,930, a far cry from an outlay of $79,675 by age 65 for the same death benefit on the non-par WL.
- 1,271
Got it. Didn't run it at no lapse premium. Yes, I'm looking at $2012. If it has to be NL UL I would definitely go with limit pay. 10 Pay looks real good, too. $3,347 was for guaranteed CSV up to age 75. Apparently actuaries want you to buy the no CSV stuff (wonder why).
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